How Does BELIMO Holding's (VTX:BEAN) CEO Pay Compare With Company Performance?

This article will reflect on the compensation paid to Lars van der Haegen who has served as CEO of BELIMO Holding AG (VTX:BEAN) since 2015. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for BELIMO Holding

How Does Total Compensation For Lars van der Haegen Compare With Other Companies In The Industry?

Our data indicates that BELIMO Holding AG has a market capitalization of CHF4.8b, and total annual CEO compensation was reported as CHF1.2m for the year to December 2019. We note that's an increase of 19% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CHF490k.

In comparison with other companies in the industry with market capitalizations ranging from CHF3.6b to CHF11b, the reported median CEO total compensation was CHF3.6m. This suggests that Lars van der Haegen is paid below the industry median. What's more, Lars van der Haegen holds CHF550k worth of shares in the company in their own name.

On an industry level, around 44% of total compensation represents salary and 56% is other remuneration. Our data reveals that BELIMO Holding allocates salary more or less in line with the wider market. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at BELIMO Holding AG's Growth Numbers

BELIMO Holding AG has seen its earnings per share (EPS) increase by 16% a year over the past three years. Revenue was pretty flat on last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has BELIMO Holding AG Been A Good Investment?

We think that the total shareholder return of 99%, over three years, would leave most BELIMO Holding AG shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

As we noted earlier, BELIMO Holding pays its CEO lower than the norm for similar-sized companies belonging to the same industry. When taking into account the company's strong EPS growth over the past three years, it appears CEO compensation is modest. Given the strong history of shareholder returns, the shareholders are probably very happy with Lars's performance.

Shareholders may want to check for free if BELIMO Holding insiders are buying or selling shares.

Switching gears from BELIMO Holding, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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